I mentioned in a previous post that graphite so hard to...

I mentioned in a previous post that graphite so hard to understand. The great thing about this conversation is that it is looking through both perspectives, not just single mindedly choosing one.

A couple years ago I mentioned RNU's mou with the silicon producer (name escapes me) and that was where I envisioned a possible source of advantage. Primarily the advantage I was looking for was to remove the disadvantage that natural graphite has vs synthetic.

Although natural is known for higher capacity, synthetic is known for higher charging rates and thus I assume higher discharging rates.

I have not been able to find information specific to natural graphite imports to U.S. This was take from SYR website but is a BMI chart:


Interestingly it states that by 2040, expected AAM will consist of 42% natural graphite up from 25% in 2023.

The US has the IRA which states that:

"The IRA requires that 60% of the value of battery components be produced or assembled in North America in 2024 to qualify for half of the tax credit, $3,750. That percentage will increase to 100% starting in 2029. To get the remaining half, 50% of the value of critical materials must be sourced from the U.S. or a free trade agreement country in 2024 and 80% from 2027 to 2032. The IRA also includes advanced manufacturing credits that give the producer a payout from the Treasury. Under Section 45X, the production of battery cells qualify for a credit of $35 per kilowatt-hour of capacity, and the production of battery modules qualify for $10 per kilowatt-hour. Companies can also be reimbursed 10% of the costs incurred due to the production of electrode active materials, like the cathode and anode. Automakers and battery manufacturers have collectively invested and promised to invest close to $100 billion in building domestic cell and module manufacturing. Together, these companies promise to deliver an annual capacity of over 1,200 gigawatt-hours before 2030, if each factory reaches maximum capacity. That’s roughly enough batteries for 18 million EVs, based on previous Tesla predictions that say about 100 GWh capacity can power around 1.5 million EVs."

Their aim is to produce the majority of the vehicle there.

Ford has partnered with SK On and GM with POSCO. Source: https://techcrunch.com/2023/08/16/tracking-the-ev-battery-factory-construction-boom-across-north-america/

With these partnering(s), we return to St Korea as what appears to be the main customer for RNUs product's to continue being IRA compliant and elligible for those benefits in the US. I'll put it to you that neither Sth Korean company would only accept premium priced IRA compliant product where that product will be used outside the USA. We now have a case where the mass market is anything but the US or other similar IRA type countries (I think some European countries are contemplating it?? please chime in if you have other info).

So back to the 2 main questions which I'd love to discuss specifically:

Where are the battery manufacturers and the BOAs? Part answer I think is, they are Sth Korean.
Do you think the U.S is capable of competing with china on a global scale and will the US just end up producing for its own market if they can't? Again, the producers appear to be Sth Korean although their completed product will/could be produced in the US. RNU would still likely be dealing with the 2 companies mentioned.

I have a new question now :-(; If the producers (assumes SK On and Posco) do prodcue in the US, will the product used in that market specifically be from IRA compliant countries?

Do you have any thoughts on those 3 questions? Do you think they are already reasonably answered or they are off the mark?